PMP Additional Terms Flashcards
An acivity carried out to bring about a predefined, specified result
Process
Every process has a set of (quality planning will create a process improvement plan):
Outputs
Every process will have a set of
Outputs
Outputs are the result of the
activities within a process
Activities are call tools or
techniques
You need information to finish
Input
The PMI publication that defines widely
accepted project management practices.
The CAPM and the PMP exam are based
on this book.
A Guide to the Project Management
Body of Knowledge (PMBOK Guide)
The areas of expertise, industry, or function where a project is centered. Examples of application areas include architecture, IT, health care, and manufacturing.
Application areas
A quantifiable return on investment. The return can be tangible, such as equipment, money, or market share. The return can also be intangible, such as brand recognition, trademarks, and reputation.
Business value
A person who has slightly less project
management experience than a PMP, but
who has qualified for and then passed the
CAPM examination.
Certified Associate in Project
Management (CAPM)
Defines how a project affects people and how those people may affect the project. Cultural and social environments include the economic, educational, ethical, religious, demographic, and ethnic composition of the people affected by the project.
Cultural and social environment
A product, service, or result created by a
project. Projects can have multiple
deliverables.
Deliverable
These include the application of accounting, procurement, sales and marketing, contracting, manufacturing, logistics, strategic planning, human resource management, standards and regulations, and information technology.
General management skills
The consideration of the local and international laws, languages, communication challenges, time zone differences, and other non-collocated issues that affect a project’s ability to progress.
International and political environment
The ability to interact, lead, motivate, and
manage people.
Interpersonal skills
A triangle with the characteristics of time,
cost, and scope. Time, cost, and scope
each constitute one side of the triangle; if
any side of the Iron Triangle is not in
balance with the other sides, the project
will suffer. The Iron Triangle of Project
Management is also known as the Triple
Constraints of Project Management, as all
projects are constrained by time, cost, and
scope.
Iron Triangle of Project Management
The physical structure and surroundings
that affect a project’s work.
Physical environment
A collection of related processes in project
management. There are five process
groups and 49 project management
processes. The five process groups are
Initiating, Planning, Executing, Monitoring
and Controlling, and Closing.
Process groups
A collection of related projects working in
unison toward a common deliverable.
Program
The process of gathering project details.
This process uses deductive reasoning,
logic, and a series of informationgathering
techniques to identify details
about a project, product, or solution.
Progressive elaboration
A temporary endeavor to create a unique
product, service, or result. The end result
of a project is also called a deliverable.
Project
A documented created and maintained by
the project sponsor and the project
manager. The project benefits
management plan defines what benefits
the project will create, when the benefits
will be realized, and how the benefits will
be measured.
Project benefits management plan
Created and maintained by the project
sponsor and shows the financial validity of
why a project is chartered and launched
within the organization. Typically, the
project business case is created before
the launch of the project and may be used
as a go/no-go decision point.
Project business case
The location and culture of the environment where the project work will reside. The project environment includes the social, economic, and environmental variables the project must work with or around.
Project environment
An organization of project management
professionals from around the world,
supporting and promoting the careers,
values, and concerns of project managers.
Project Management Institute (PMI)
The phases that make up the project.
Project life cycles are unique to the type of
work being performed and are not
universal to all projects.
Project life cycle
A central office that oversees all projects within an organization or within a functional department. A PMO supports the project manager through software, training, templates, policies, communication, dispute resolution, and other services.
Project management office (PMO)
A person who has proven project
management experience and has qualified
for and then passed the PMP
examination.
Project Management Professional (PMP)
The management and selection of projects that support an organization’s vision and mission. It is the balance of project priority, risk, reward, and return on investment. This is a senior management process.
Project portfolio management
A smaller project managed within a larger,
parent project. Subprojects are often
contracted work whose deliverable allows
the larger project to progress.
Subprojects
Also known as the Iron Triangle. This
theory posits that time, cost, and scope
are three constraints that every project
has.
Triple Constraints of Project
Management
Raw data, observations, and measurements about project components. Work performance data is gathered and stored in the project management information system.
Work performance data
Work performance information is the
processed and analyzed data that will help
the project manager make project
decisions.
Work performance information
Work performance reports is the formatted communication of work performance information. Work performance reports communicate what’s happening in the project through status reports, memos, dashboards, or other modalities.
Work performance reports
An organization where organizational resources are pooled into one project team, but the functional managers and the project managers share the project power.
Balanced matrix structure
Cultural norms describe the culture and the styles of an organization. Cultural norms, such as work ethics, hours, view of authority, and shared values, can affect how the project is managed.
Cultural norms
Conditions that affect how the project
manager may manage the project.
Enterprise environmental factors come
from within the project, such as policy, or
they be external to the organization, such
as law or regulation.
Enterprise environmental factors
An organization that is divided into functions, and each employee has one clear functional manager. Each department acts independently of the other departments. A project manager in this structure has little to no power and may be called a project coordinator.
Functional structure
Governance framework describes the rules, policies, and procedures that people within an organization abide by. Governance framework addresses the organization, but also address portfolios, programs, and projects. Regarding portfolios, programs, and projects the governance framework addresses alignment with organizational vision, risk management, performance factors, and communication.
Governance framework
An organization that creates a blend of
the functional, matrix, and projectoriented
structures.
Hybrid structure
Describe organizations that have duplication of efforts within the organization, but not within each department or division of the organization. Project manager has little authority in this structure and the functional manager controls the project budget.
Multidivisional structure
Describes a loosely organized business
or organization. There likely aren’t big
formal departments and people work
alongside one another regardless of roles
and titles. The project manager likely has
little control over the project resources
and may not be called a project manager.
Organic or simple
Organizational process assets include organizational processes, policies, procedures, and items from a corporate knowledge base. Organizational process assets are grouped into two categories to consider: processes, policies and procedures, and organizational knowledge bases.
Organizational process assets
Organizational knowledge repositories are the databases, files, and historical information that you can use to help better plan and manage your projects. This is an organizational process asset that is created internally to your organization through the ongoing work of operations and other projects.
Organizational Knowledge Repositories
A system can create things by working
with multiple components that the
individual components could not create if
they worked alone. The structure of the
organization and the governance
framework creates constraints that affect
how the project manager makes
decisions within the project. The
organizational system directly affects how
the project manager utilizes their power,
influence, leadership, and even political
capital, to get things done in the
environment.
Organizational System
A business unit that centralizes the
operations and procedures of all projects
within the organization. The PMO can be
supportive, controlling, or directive.
Project management office (PMO)
An organization that assigns a project team to one project for the duration of the project life cycle. The project manager has high-to-almost-complete project power.
Project-oriented structure
An organization where organizational resources are pooled into one project team, but the functional managers have less project power than the project manager.
Strong matrix structure
Uses a network structure to communicate and interact with other groups and departments. A point of contact exists for each department and these department point of contact receive and send all messages for the department.
Virtual organization
An organization where organizational resources are pooled into one project team, but the functional managers have more project power than the project manager.
Weak matrix structure
The message receiver restates what’s
been said to fully understand and confirm
the message and it provides an
opportunity for the sender to clarify the
message if needed.
active listening
Active problem solving begins with problem definition. Problem definition is the ability to discern between the cause and effect of the problem. Root-cause analysis looks beyond the immediate symptoms to the cause of the symptoms—which then affords opportunities for solutions.
active problem solving
The project manager refuses to act, get
involved, or make decisions.
avoiding power
The leader is motivating, has highenergy, and inspires the team through strong convictions about what’s possible and what the team can achieve. Positive thinking and a can-do mentality are characteristics of a charismatic leader.
charismatic leadership
The project manager has deep skills and
experience in a discipline (for example,
years of working in IT helps an IT project
manager better manage IT projects).
expert power
The project manager aims to gain favor
with the project team and stakeholders
through flattery.
ingratiating power
The individual has power and control of
the data gathering and distribution of
information.
informational power
The leader is a hybrid of transactional, transformational, and charismatic leaders. The interactional leader wants the team to act, is excited and inspired about the project work, yet still holds the team accountable for their results
interactional leadership
The project manager can make the team
and stakeholders feel guilty to gain
compliance in the project.
guilt-based power
Leadership is about aligning, motivating,
and inspiring the project team members
to do the right thing, build trust, think
creatively, and to challenge the status
quo.
leadership
The leader takes a “hands-off” approach
to the project. This means the project
team makes decisions, takes initiative in
the actions, and creates goals. While this
approach can provide autonomy, it can
make the leader appear absent when it
comes to project decisions.
laissez-faire leadership
Management utilizes positional power to
maintain, administrate, control, and focus
on getting things done without
challenging the status quo of the project
and organization.
management
Based on the audience and the message
being sent, the media should be in
alignment with the message.
media selection
Meetings are forms of communication. How the meeting is led, managed, and controlled all influence the message being delivered. Agendas, minutes, and order are mandatory for effective communications within a meeting.
meeting management
The project manager has a warm
personality that others like.
personal or charismatic power
In formal presentations, the presenter’s
oral and body language, visual aids, and
handouts all influence the message being
delivered.
presentation
The project manager can restrict choices
to get the project team to perform and do
the project work.
pressure-based power
Defines three areas of PDUs for PMI certified professionals to maintain their certification. The PMI Talent Triangle includes technical project management, leadership, and strategic and business management.
PMI Talent Triangle
The project manager’s power is because
of the position she has as the project
manager. This is also known as formal,
authoritative, and legitimate power.
positional power
PDUs are earned after the PMP to maintain the PMP certification. PMPs are required to earn 60 PDUs per three-year certification cycle. Of the 60 PDUs, a minimum of 35 hours must come from educational opportunities.
Professional Development Units (PDUs)
The role of leading the project team and
managing the project resources to
effectively achieve the objectives of the
project.
project manager
The project manager can punish the
project team.
punitive or coercive power
The project manager is respected or admired because of the team’s past experiences with the project manager. This is about the project manager’s credibility in the organization.
referent power
The project manager can reward the
project team.
reward power
Communication requires a sender and a receiver. Within this model may be multiple avenues to complete the flow of communication, but barriers to effective communication may be present as well.
sender-receiver models
The leader puts others first and focuses on the needs of the people he serves. Servant leaders provide opportunity for growth, education, autonomy within the project, and the well-being of others. The primary focus of servant leadership is service to others.
servant leadership
The project manager has power because
of certain situations in the organization.
situational power
The tone, structure, and formality of the
message being sent should be in
alignment with the audience and the
content of the message.
style
The leader emphasizes the goals of the
project and rewards and disincentives for
the project team. This is sometimes
called management by exception as it’s
the exception that is reward or punished.
transactional leadership
The leader inspires and motivates the
project team to achieve the project goals.
Transformational leaders aim to empower
the project team to act, be innovative in
the project work, and accomplish through
ambition.
transformational leadership
An assumption is something that is believed to be true or false, but it has not yet been proven to be true or false. Assumptions that prove wrong can become risks for the project. All identified project assumptions are recorded in the assumption log for testing and analysis, and the outcomes are recorded.
Assumption log
This is an example of a benefits
comparison model. It examines the
benefit-to-cost ratio.
Benefit/cost ratio (BCR) models
A committee that evaluates the
worthiness of a proposed change and
either approves or rejects the proposed
change.
Change control board (CCB)
The change control system communicates the process for controlling changes to the project deliverables. This system works with the configuration management system and seeks to control and document proposals to change the project’s product.
Change control system (CCS)
All changes that enter into a project are
recorded in the change log. The
characteristics of the change, such as the
time, cost, risk, and scope details, are
also recorded.
Change log
This plan details the project procedures
for entertaining change requests: how
change requests are managed,
documented, approved, or declined.
Change management plan
This final process group of the project management life cycle is responsible for closing the project phase or project. This is where project documentation is archived and project contracts are also closed.
Closure processes
This plan defines who will get what
information, how they will receive it, and
in what modality the communication will
take place.
Communications management plan
This includes the labeling of the
components, how changes are made to
the product, and the accountability of the
changes.
Configuration identification
This plan is an input to the control scope
process. It defines how changes to the
features and functions of the project
deliverable, the product scope, may enter
the project.
Configuration management plan
This system defines how stakeholders are allowed to submit change requests, the conditions for approving a change request, and how approved change requests are validated in the project scope. Configuration management also documents the characteristics and functions of the project’s products and any changes to a product’s characteristics.
Configuration management system
The organization of the product materials,
details, and prior product documentation.
Configuration status accounting
The scope verification and completeness
auditing of project or phase deliverables
to ensure that they are in alignment with
the project plan.
Configuration verification and auditing
The formal verification of the contract
completeness by the vendor and the
performing organization.
Contract closure
This is the aggregated costs of all of the work packages within the work breakdown structure (WBS).
Cost baseline
This plan details how the project costs
will be planned for, estimated, budgeted,
and then monitored and controlled.
Cost management plan
Knowledge that can be quickly and easily
expressed through conversations,
documentation, figures, or numbers, is
easily communicated.
Explicit knowledge
A benefit comparison model to determine
a future value of money. The formula to
calculate future value is FV = PV(1 + I)n,
where PV is present value, I is the given
interest rate, and n is the number of
periods.
Future value
A process to consider and control the
impact of a proposed change on the
project’s knowledge areas.
Integrated change control
Issues are points of contention where some question of the project’s direction needs to be resolved. All identified issues are documented in the issue log, along with an issue owner and a deadline to resolve the issue. The outcome of the issue is also recorded.
Issue log
A project selection method to determine the likelihood of success. These models include linear programming, nonlinear programming, dynamic programming, integer programming, and multiobjective programming.
Mathematical model
Milestones are significant points or events in the project’s progress that represent accomplishment in the project. Projects usually create milestones as the result of completing phases within the project.
Milestone
This list details the project milestones and
their attributes. It is used for several
areas of project planning, but also helps
determine how quickly the project may be
achieving its objectives.
Milestone list
These are committees that ask every conceivable negative question about the proposed project. Their goals are to expose the project’s strengths and weaknesses, and to kill the project if it’s deemed unworthy for the organization to commit to. Also known as project steering committees or project selection committees.
Murder boards
Evaluates the monies returned on a
project for each period the project lasts.
Net present value
An estimate to predict how long it will
take a project to pay back an organization
for the project’s investment of capital.
Payback period
A benefit comparison model to determine the present value of a future amount of money. The formula to calculate present value is PV = FV ÷ (1 + I)n, where FV is future value, I is the given interest rate, and n is the number of periods.
Present value
The procurement management plan
controls how the project will acquire
goods and services.
Procurement management plan
This document authorizes the project. It defines the initial requirements of the project stakeholders. The project charter is endorsed by an entity outside of the project boundaries.
Project charter
The documented approach of how a project will be planned, executed, monitored and controlled, and then closed. This document is a collection of subsidiary management plans and related documents.
Project management plan
Defines how the project scope will be
planned, managed, and controlled.
Project scope management plan
Documents the quality objectives for the
project, including the metrics for
stakeholder acceptance of the project
deliverable.
Quality baseline
This plan defines what quality means for the project, how the project will achieve quality, and how the project will map to organizational procedures pertaining to quality.
Quality management plan
A mathematical model to examine the
relationship among project variables, like
cost, time, labor, and other project
metrics.
Regression analysis
Risk is an uncertain event or condition
that may affect the project outcome. The
risk management plan defines how the
project will manage risk.
Risk management plan
The risk register is a centralized database
consisting of the outcome of all the other
risk management processes, such as the
outcome of risk identification, qualitative
analysis, and quantitative analysis.
Risk register
This subsidiary plan defines the risk
responses that are to be used in the
project for both positive and negative
risks.
Risk response plan
This is the planned start and finish of the
project. The comparison of what was
planned and what was experienced is the
schedule variance.
Schedule baseline
Defines how the project schedule will be
created and managed.
Schedule management plan
The scope baseline is a combination of three project documents: the project scope statement, the work breakdown structure, and the WBS dictionary. The creation of the project deliverable will be measured against the scope baseline to show any variances from what was expected and what the project team has created.
Scope baseline
These models use a common set of values for all of the projects up for selection. For example, values can be profitability, complexity, customer demand, and so on.
Scoring models
Knowledge that’s more difficult to express
because it’s personal beliefs, values,
knowledge gain from experience, and
“know-how” when doing a task.
tacit knowledge
A planning heuristic for creating the WBS. This rule states that the work package in a WBS must take no more than 80 hours of labor to create and no fewer than 8 hours of labor to create.
8/80 Rule
The observer interacts with the worker to
ask questions and understand each step
of the work being completed. In some
instances, the observer could serve as an
assistant in doing the work.
Active observation
When stakeholders create a large
number of ideas, you can use an affinity
diagram to cluster similar ideas together
for further analysis.
Affinity diagrams
A scope definition process of finding alternative solutions for the project customer while considering the customer’s satisfaction, the cost of the solution, and how the customer may use the product in operations.
Alternatives generation
A decision method where only one
individual makes the decision for the
group.
Autocratic
This approach encourages participants to generate as many ideas as possible about the project requirements. No idea is judged or dismissed during the brainstorming session.
Brainstorming
Documented in the scope management
plan, this system defines how changes to
the project scope are managed and
controlled.
Change control system (CCS)
A numbering system for each item in the WBS. The PMBOK is a good example of a code of accounts, as each chapter and its subheadings follow a logical numbering scheme. For example, PMBOK 5.3.3.2 identifies an exact paragraph in the PMBOK.
Code of accounts
This subsidiary plan defines how
changes to the features and functions of
the project deliverables will be monitored
and controlled within the project.
Configuration management plan
These diagrams show the relationship between elements of an environment. For example, a context diagram would illustrate the networks, servers, workstations, and people that interact with the elements of the environment.
Context diagram
A moderator-led requirements collection
method to elicit requirements from
stakeholders.
Focus group
This is the study of the functions within a
system, project, or, what’s more likely in
the project scope statement, the product
the project will be creating. Functional
analysis studies the goals of the product,
how the product will be used, and the
expectations the customer has of the
product once it leaves the project and
moves into operations. Functional
analysis may also consider the cost of
the product in operations, which is known
as life-cycle costing.
Functional analysis
Most projects have a determined budget in relation to the project scope. There may be a qualifier on this budget, such as plus or minus 10 percent based on the type of cost estimate created.
Funding limit
A requirements collection method used to
elicit requirements from stakeholders in a
one-on-one conversation
Interviews
A group decision method where more
than 50 percent of the group must be in
agreement.
Majority
This approach maps ideas to show the relationship among requirements and the differences between requirements. The map can be reviewed to identify new solutions or to rank the identified requirements.
Mind mapping
As with brainstorming, participants are
encouraged to generate as many ideas
as possible, but the suggested ideas are
ranked by a voting process.
Nominal group technique
The observer records information about
the work being completed without
interrupting the process; sometimes
called the invisible observer.
Passive observation
A group-decision method where the
largest part of the group makes the
decision when it’s less than 50 percent of
the total. (Consider three or four factions
within the stakeholders.)
Plurality
This project scope statement component works with the project requirements, but focuses specifically on the product and what the conditions and processes are for formal acceptance of the product.
Product acceptance criteria
A scope definition technique that breaks
down a product into a hierarchical
structure, much like a WBS breaks down
a project scope.
Product breakdown
This is a narrative description of what the
project is creating as a deliverable for the
project customer.
Product scope description
Defines the product or service that will
come about as a result of completing the
project. It defines the features and
functions that characterize the product.
Product scope
A project assumption is a factor in the
planning process that is held to be true
but not proven to be true.
Project assumptions
A project boundary clearly states what is included with the project and what’s excluded from the project. This helps to eliminate assumptions between the project management team and the project customer.
Project boundaries
A constraint is anything that limits the project manager’s options. Consider a predetermined budget, deadline, resources, or materials the project manager must use within the project— these are all examples of project constraints.
Project constraints
These are the measurable goals that determine a project’s acceptability to the project customer and the overall success of the project. Objectives often include the cost, schedule, technical requirements, and quality demands.
Project objectives
These are the demands set by the customer, regulations, or the performing organization that must exist for the project deliverables to be acceptable. Requirements are often prioritized in a number of ways, from “must have” to “should have” to “would like to have.”
Project requirements
This defines all of the work, and only the
required work, to complete the project
objectives.
Project scope
This project management subsidiary plan controls how the scope will be defined, how the project scope statement will be created, how the WBS will be created, how scope validation will proceed, and how the project scope will be controlled throughout the project.
Project scope management plan
This documentation of what the
stakeholders expected in the project
defines all of the requirements that must
be present for the work to be accepted by
the stakeholders.
Requirements documentation
This subsidiary plan defines how changes to the project requirements will be permitted, how requirements will be tracked, and how changes to the requirements will be approved
Requirements management plan
This is a table that maps the
requirements throughout the project all
the way to their completion.
Requirements traceability matrix (RTM)
The project customer may have specific
dates when phases of the project should
be completed. These milestones are
often treated as project constraints.
Schedule milestones
Undocumented, unapproved changes to
the project scope.
Scope creep
The formal inspection of the project
deliverables, which leads to project
acceptance.
Scope validation
A scope definition process where the
project management team interviews the
stakeholders and categorizes, prioritizes,
and documents what the project
customer wants and needs. The analysis
is to determine, quantify, and prioritize
the interests of the stakeholders.
Stakeholder analysis demands
quantification of stakeholder objectives;
goals such as “good,” “satisfaction,” and
“speedy” aren’t quantifiable.
Stakeholder analysis
A scope definition approach that studies
and analyzes a system, its components,
and the relationship of the components
within the system.
Systems analysis
This project scope statement creation process studies how a system should work, designs and creates a system model, and then enacts the working system based on the project’s goals and the customer’s expectations. Systems engineering aims to balance the time and cost of the project in relation to the scope of the project.
Systems engineering
A group decision method where everyone
must be in agreement.
Unanimity
As with value engineering, this approach
examines the functions of the project’s
product in relation to the cost of the
features and functions. This is where, to
some extent, the grade of the product is
in relationship to the cost of the product.
Value analysis
This approach to project scope statement creation attempts to find the correct level of quality in relation to a reasonable budget for the project deliverable while still achieving an acceptable level of performance of the product.
Value engineering
A WBS companion document that
defines all of the characteristics of each
element within the WBS.
WBS dictionary
A prepopulated WBS for repetitive
projects. Previous projects’ WBSs are
often used as templates for current
similar projects.
WBS template
A deliverables-oriented breakdown of the
project scope.
Work breakdown structure (WBS)
The smallest item in the WBS.
Work package
Status of the deliverables: the work that’s
been started, finished, or has yet to
begin.
Work performance information
The primary output of breaking down the
WBS work packages.
Activity list
The identification of more than one
solution. Consider roles, materials, tools,
and approaches to the project work.
Alternative analysis
A somewhat unreliable estimating approach that relies on historical information to predict what current activity durations should be. Analogous estimating is more reliable, however, than team member recollections. Analogous estimating is also known as top-down estimating and is a form of expert judgment.
Analogous estimating
The most accurate time-and-cost estimating approach a project manager can use. This estimating approach starts at “the bottom” of the project and considers every activity, its predecessor and successor activities, and the exact amount of resources needed to complete each activity.
Bottom-up estimating
A WBS entry that considers the time, cost, and scope measurements for that deliverable within the WBS. The estimated performance is compared against the actual performance to measure overall performance for the deliverables within that control account. The specifics of a control account are documented in a control account plan.
Control account
A predetermined range of acceptable variances, such as +/–10 percent off schedule. Should the variance exceed the threshold, then project control processes and corrected actions will be enacted.
Control threshold
A schedule compression approach that adds more resources to activities on the critical path to complete the project earlier. When crashing a project, costs are added because the associated labor and sometimes resources (such as faster equipment) cause costs to increase.
Crashing
The path in the project network diagram
that cannot be delayed, otherwise the
project completion date will be late. There
can be more than one critical path.
Activities in the critical path have no float.
Critical path
These dependencies are the preferred order of activities. Project managers should use these relationships at their discretion and should document the logic behind the decision. Discretionary dependencies allow activities to happen in a preferred order because of best practices, conditions unique to the project work, or external events. Also known as preferential or soft logic.
Discretionary dependencies
The earliest a project activity can finish.
Used in the forward pass procedure to
discover the critical path and the project
float.
Early finish
The earliest a project activity can begin.
Used in the forward pass procedure to
discover the critical path and the project
float.
Early start
As the name implies, these are dependencies outside of the project’s control. Examples include the delivery of equipment from a vendor, the deliverable of another project, or the decision of a committee, lawsuit, or expected new law.
External dependencies
A schedule compression method that changes the relationship of activities. With fast tracking, activities that would normally be done in sequence are allowed to be done in parallel or with some overlap. Fast tracking can be accomplished by changing the relation of activities from FS to SS or even FF or by adding lead time to downstream activities. However, fast tracking does add risk to the project
Fast tracking
An activity relationship type that requires
the current activity to be finished before
its successor can finish.
Finish-to-finish
An activity relationship type that requires
the current activity to be finished before
its successor can start.
Finish-to-start
A representation of a project network diagram that is often used for outsourced portions of a project, repetitive work within a project, or a subproject. Also called a subnet.
Fragnet
This is the total time a single activity can
be delayed without affecting the early
start of its immediately following
successor activities.
Free float
Logic that describes activities that must happen in a particular order. For example, the dirt must be excavated before the foundation can be built. The foundation must be in place before the framing can begin. Also known as a mandatory dependency.
Hard logic
Internal relationships to the project or the
organization. For example, the project
team must create the software as part of
the project’s deliverable before the
software can be tested for quality control.
Internal dependencies
Positive time that moves two or more
activities further apart.
Lag time
The latest a project activity can finish.
Used in the backward pass procedure to
discover the critical path and the project
float.
Late finish
The latest a project activity can begin.
Used in the backward pass procedure to
discover the critical path and the project
float.
Late start
Negative time that allows two or more
activities to overlap where ordinarily
these activities would be sequential.
Lead time
A percentage of the project duration to combat Parkinson’s Law. When project activities become late, their lateness is subtracted from the management reserve.
Management reserve
These dependencies are the natural order of activities. For example, you can’t begin building your house until your foundation is in place. These relationships are called hard logic
Mandatory dependencies
A project simulation approach named after the world-famous gambling district in Monaco. This predicts how scenarios may work out, given any number of variables. The process doesn’t actually churn out a specific answer, but a range of possible answers. When Monte Carlo analysis is applied to a schedule, it can examine, for example, the optimistic completion date, the pessimistic completion date, and the most likely completion date for each activity in the project and then predict a mean for the project schedule.
Monte Carlo analysis
A quantitatively based duration estimate that uses mathematical formulas to predict how long an activity will take based on the quantities of work to be completed.
Parametric estimate
A theory that states: “Work expands so as to fill the time available for its completion.” It is considered with time estimating, because bloated or padded activity estimates will fill the amount of time allotted to the activity.
Parkinson’s Law
A WBS entry located below a control account and above the work packages. A planning package signifies that there is more planning that needs to be completed for this specific deliverable
Planning package
A network diagram that shows activities in nodes and the relationship between each activity. Predecessors come before the current activity, and successors come after the current activity.
Precedence diagramming method
Calendars that identify when the project
work will occur.
Project calendars
This is the total time the project can be
delayed without passing the customerexpected
completion date.
Project float
A diagram that visualizes the flow of the
project activities and their relationships to
other project activities.
Project network diagram
An update to the work breakdown
structure.
Refinement
This is a hierarchical breakdown of the project resources by category and resource type. For example, you could have a category of equipment, a category of human resources, and a category of materials. Within each category, you could identify the types of equipment your project will use, the types of human resources, and the types of materials.
Resource breakdown structure (RBS)
Calendars that identify when project
resources are available for the project
work.
Resource calendars
A method to flatten the schedule when resources are overallocated. Resource leveling can be applied using different methods to accomplish different goals. One of the most common methods is to ensure that workers are not overextended on activities.
Resource-leveling heuristic
The imminent work is planned in detail,
while the work in the future is planned at
a high level. This is a form of progressive
elaboration.
Rolling wave planning
A subsidiary plan in the project
management plan. It defines how the
project schedule will be created,
estimated, controlled, and managed.
Schedule management plan
The activities don’t necessarily have to
happen in a specific order. For example,
you could install the light fixtures first,
then the carpet, and then paint the room.
The project manager could use soft logic
to change the order of the activities if so
desired.
Soft logic
An activity relationship that requires an
activity to start so that its successor can
finish. This is the most unusual of all the
activity relationship types.
Start-to-finish
An activity relationship type that requires
the current activity to start before its
successor can start.
Start-to-start
A representation of a project network
diagram that is often used for outsourced
portions of projects, repetitive work within
a project, or a subproject. Also called a
fragnet
Subnet
A previous project that can be adapted
for the current project and forms that are
pre-populated with organizational-specific
information.
Template
An estimating technique for each activity
that requires optimistic, most likely, and
pessimistic estimates to be created.
Based on these three estimates, an
average can be created to predict how
long the activity should take.
Three-point estimate
This is the total time an activity can be
delayed without delaying project
completion.
Total float
The smallest item in the work breakdown
structure.
Work package
The actual amount of monies the project
has spent to date
Actual cost (AC)
An approach that relies on historical information to predict the cost of the current project. It is also known as topdown estimating and is the least reliable of all the cost-estimating approaches.
Analogous estimating
An estimating approach that starts from
zero, accounts for each component of the
WBS, and arrives at a sum for the
project. It is completed with the project
team and can be one of the most timeconsuming
and most reliable methods to
predict project costs.
Bottom-up estimating
This estimate is also somewhat broad and is used early in the planning processes and also in top-down estimates. The range of variance for the estimate can be from –10 percent to +25 percent.
Budget estimate
A cost-estimating approach that uses a
database, typically software-driven, to
create the cost estimate for a project.
Commercial database
A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager’s discretion and with management’s approval to counteract cost overruns for scheduled activities and risk events.
Contingency reserve
Costs are parallel to each WBS work package. The costs of each work package are aggregated to their corresponding control accounts. Each control account then is aggregated to the sum of the project costs.
Cost aggregation
A time-lapse exposure of when the
project monies are to be spent in relation
to cumulative values of the work
completed in the project.
Cost baseline
The cost aggregation achieved by assigning specific dollar amounts for each of the scheduled activities or, more likely, for each of the work packages in the WBS. Cost budgeting applies the cost estimates over time.
Cost budgeting
A system that examines any changes associated with scope changes, the cost of materials, and the cost of any other resources, and the associated impact on the overall project cost.
Cost change control system
The cost management plan dictates how
cost variances will be managed.
Cost management plan
The monies spent to recover from not
adhering to the expected level of quality.
Examples may include rework, defect
repair, loss of life or limb because safety
precautions were not taken, loss of sales,
and loss of customers. This is also known
as the cost of nonconformance to quality.
Cost of poor quality
The monies spent to attain the expected
level of quality within a project. Examples
include training, testing, and safety
precautions.
Cost of quality
Measures the project based on its
financial performance. The formula is CPI
= EV/AC.
Cost performance index (CPI)
The difference of the earned value
amount and the cumulative actual costs
of the project. The formula is CV = EV –
AC.
Cost variance (CV)
This estimate type is one of the most accurate. It’s used late in the planning processes and is associated with bottomup estimating. You need the WBS in order to create the definitive estimate. The range of variance for the estimate can be from –5 percent to +10 percent.
Definitive estimate
Costs are attributed directly to the project
work and cannot be shared among
projects (for example, airfare, hotels,
long-distance phone charges, and so on).
Direct costs
Earned value is the physical work completed to date and the authorized budget for that work. It is the percentage of the BAC that represents the actual work completed in the project.
Earned value (EV)
These forecasting formulas predict the
likely completed costs of the project
based on current scenarios within the
project.
Estimate at completion (EAC)
An earned value management formula that predicts how much funding the project will require to be completed. Three variations of this formula are based on conditions the project may be experiencing.
Estimate to complete (ETC)
Costs that remain constant throughout the life of the project (the cost of a piece of rented equipment for the project, the cost of a consultant brought on to the project, and so on).
Fixed costs
An organization’s approach to managing
cash flow against the project deliverables
based on a schedule, milestone
accomplishment, or data constraints.
Funding limit reconciliation
Costs that are representative of more than one project (for example, utilities for the performing organization, access to a training room, project management software license, and so on).
Indirect costs
An event that will likely happen within the
project, but when it will happen and to
what degree is unknown. These events,
such as delays, are usually risk-related.
Known unknown
An approach that assumes the cost per
unit decreases the more units workers
complete, because workers learn as they
complete the required work.
Learning curve
A market condition where the market is
so tight that the actions of one vendor
affect the actions of all the others.
Oligopoly
The total cost of the opportunity that is
refused to realize an opposing
opportunity.
Opportunity cost
An approach using a parametric model to extrapolate what costs will be needed for a project (for example, cost per hour and cost per unit). It can include variables and points based on conditions.
Parametric estimating
Planned value is the work scheduled and the budget authorized to accomplish that work. It is the percentage of the BAC that reflects where the project should be at this point in time.
Planned value (PV)
The final variance, which is discovered
only at the project’s completion. The
formula is VAR = BAC – AC.
Project variance
This is a statistical approach to predicting
what future values may be, based on
historical values. Regression analysis
creates quantitative predictions based on
variables within one value to predict
variables in another. This form of
estimating relies solely on pure statistical
math to reveal relationships between
variables and to predict future values.
Regression analysis
Cost reserves are for unknown unknowns within a project. The management reserve is not part of the project cost baseline, but is included as part of the project budget.
Reserve analysis
This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from –25 percent to +75 percent.
Rough order of magnitude
Measures the project based on its
schedule performance. The formula is
SPI = EV/PV.
Schedule performance index (SPI)
The difference between the earned value
and the planned value. The formulas is
SV = EV – PV.
Schedule variance (SV)
Many vendors can provide what your
project needs to purchase, but you prefer
to work with a specific vendor.
Single source
Only one vendor can provide what your
project needs to purchase. Examples
include a specific consultant, specialized
service, or unique type of material.
Sole source
Monies that have already been invested
in a project.
Sunk costs
A formula to forecast the likelihood of a
project to achieve its goals based on
what’s happening in the project right now.
There are two different flavors for the
TCPI, depending on what you want to
accomplish. If you want to see if your
project can meet the budget at
completion, you’ll use this formula: TCPI
= (BAC – EV)/(BAC – AC). If you want to
see if your project can meet the newly
created estimate at completion, you’ll use
this version of the formula: TCPI = (BAC
– EV)/(EAC – AC).
To-Complete Performance Index
Costs that change based on the conditions applied in the project (the number of meeting participants, the supply of and demand for materials, and so on).
Variable costs
The difference between what was
expected and what was experienced.
Variance
A forecasting formula that predicts how much of a variance the project will likely have based on current conditions within the project. The formula is VAC = BAC – EAC.
Variance at completion (VAC)
These diagrams, such as the project network
diagram, show the flow of the project work.
Activity network diagram
This diagram breaks down ideas, solutions,
causes, and project components and groups
them together with other similar ideas and
components.
Affinity diagram
Comparing any two similar entities to measure
their performance.
Benchmarking
Diagrams that show the relationship between
variables within a process and how those
relationships may contribute to inadequate
quality. The diagrams can help organize both the
process and team opinions, as well as generate
discussion on finding a solution to ensure quality.
Cause-and-effect diagrams
A simple approach to ensure that work is
completed according to the quality policy.
Checklist
A quality control chart that maps the
performance of project work over time.
Control chart
An inspection-driven process that measures work
results to confirm that the project is meeting the
relevant quality standards.
Control quality
This is the cost associated with the monies spent
to attain the expected level of quality. It is also
known as the cost of quality.
Cost of conformance
The cost associated with not satisfying quality
expectations. This is also known as the cost of
poor quality.
Cost of nonconformance to quality
A process to study the trade-offs between costs
and the benefits realized from those costs.
Cost-benefit analysis
An approach that relies on statistical scenarios to
determine what variables within a project will
result in the best outcome.
Design of experiments
Assurance provided to the external customers of
the project.
External QA
A diagram illustrating how components within a
system are related. Flowcharts show the relation
between components, as well as help the project
team determine where quality issues may be
present and, once done, plan accordingly.
Flowchart
Assurance provided to management and the
project team.
Internal QA
The abbreviation for the International
Organization for Standardization. ISO is Greek for
“equal,” while “International Organization for
Standardization” in a different language would
be abbreviated differently. The organization
elected to use “ISO” for all languages.
ISO
A data analysis table that shows the strength
between variables and relationships in the
matrix.
Matrix diagram
A histogram that illustrates and ranks categories
of failure within a project.
Pareto diagram
According to ASQ, the degree to which a set of
inherent characteristics fulfills requirements.
Quality
A management process that defines the quality
system or quality policy that a project must
adhere to. QA aims to plan quality into the
project rather than to inspect quality into a
deliverable.
Quality assurance
This plan defines how the project team will
implement and fulfill the quality policy of the
performing organization.
Quality management plan
The operational definitions that specify the
measurements within a project and the expected
targets for quality and performance.
Quality metrics
The process of first determining which quality
standards are relevant to your project and then
finding out the best methods of adhering to
those quality standards.
Quality planning
A component of a control chart that illustrates
the results of seven measurements on one side
of the mean, which is considered “out of control”
in the project.
Rule of Seven
A quality control tool that shows the results of
inspection in the order in which they’ve
occurred. The goal of a run chart is first to
demonstrate the results of a process over time
and then to use trend analysis to predict when
certain trends may reemerge.
Run chart
A quality control tool that tracks the relationship
between two variables over time. The two
variables are considered related the closer they
track against a diagonal line.
Scatter diagram
These seven tools are used in quality planning
and in quality control: cause-and-effect diagrams,
flowcharts, check sheets, Pareto diagrams,
histograms, control charts, and scatter diagrams.
Seven basic quality tools
A process of choosing a percentage of results at
random. For example, a project creating a
medical device may have 20 percent of all units
randomly selected to check for quality.
Statistical sampling
Flowcharts that illustrate the flow of a process
through a system, such as a project change
request through the change control system, or
work authorization through a quality control
process.
System or process flowcharts
Tree diagrams show the hierarchies and
decomposition of a solution, an organization, or a
project team. The WBS and an org chart are
examples of tree diagrams.
Tree diagram
The science of using past results to predict future
performance.
Trend analysis
The results of the project work as needed. This
includes technical performance measures,
project status, information on what the project
has created to date, corrective actions, and
performance reports.
Work performance information
Once the project is done, either the team moves
onto other assignments as a unit, or the project
team is disbanded and individual team members
go on to other work.
Adjourning
Project management team members may have
authority over other project team members, may
have the ability to make decisions, and perhaps
even sign approvals for project work and
purchases.
Authority power
The project manager has the authority to
discipline the project team members. This is also
known as penalty power.
Coercive power
This approach confronts the problem head-on
and is the preferred method of conflict
resolution. Multiple viewpoints and perspectives
contribute to the solution.
Collaborate/Problem solving
Contracts and agreements with unions or other
employee groups may serve as constraints on the
project
Collective bargaining agreement constraints
This attribute defines what talents, skills, and
capabilities are needed to complete the project
work.
Competency
This approach requires that both parties give up
something.
Compromising
This theory states that people will behave based
on what they expect as a result of their behavior.
In other words, people will work in relation to
the expected reward.
Vroom’s Expectancy Theory
The project manager’s authority comes both
from experience with the technology the project
Expert power
The person with the power makes the decision.
Forcing power
The project manager has been assigned the role
of project manager by senior management and is
in charge of the project.
Formal power
The project team meets and learns about their
roles and responsibilities on the project. Little
interaction among the project team happens in
this stage as the team is learning about the
project and project manager.
Forming
Frederick Herzberg’s theory of the motivating
agents and hygiene agents that affect a person’s
willingness to excel in his career.
Herzberg’s Theory of Motivation
A chart showing the relationship between
superior and subordinate employees, groups,
disciplines, and even departments.
Hierarchical organizational chart
A logbook of the issues the project team has
identified and dates as to when the issues must
be resolved by. The issue log may also include
team members or stakeholders who are
responsible for finding a solution to the identified
issues.
Issue Log
Abraham Maslow’s theory of the five needs all
humans have and work toward.
Maslow’s Hierarchy of Needs
David McClelland developed this theory, which
states our needs are acquired and developed by
our experiences over time. All people are,
according to this theory, driven by one of three
needs: achievement, affiliation, or power.
McClelland’s Theory of Needs
Douglas McGregor’s theory that states
management views workers in the Y category as
competent and self-led and workers in the X
category as incompetent and needing to be
micromanaged.
McGregor’s Theory of X and Y
A method to rate potential project team
members based on criteria such as education,
experience, skills, knowledge, and more.
Multicriteria Decision Analysis
Project team members go about getting the
project work, begin to rely on one another, and
generally complete their project assignments.
Norming
Traditional chart that depicts how the
organization is broken down by department and
disciplines. This chart is sometimes called the
organizational breakdown structure (OBS) and is
arranged by departments, units, or teams.
Organization chart
William Ouchi’s theory is based on the
participative management style of the Japanese.
This theory states that workers are motivated by
a sense of commitment, opportunity, and
advancement.
Ouchi’s Theory Z
If a project team can reach the performing stage
of team development, they trust one another,
work well together, and issues and problems get
resolved quickly and effectively.
Performing
The hidden goals, personal agendas, and
alliances among the project team members and
the stakeholders.
Political interfaces
A RACI chart is a matrix chart that only uses the
activities of responsible, accountable, consult,
and inform.
RACI chart
The project team personally knows the project
manager. Referent can also mean that the
project manager refers to the person who
assigned him the position.
Referent power
This hierarchical chart can decompose the
project by the type of resources used throughout
it.
Resource breakdown structure (RBS)
A RAM chart shows the correlation between
project team members and the work they’ve
been assigned to complete.
Responsibility assignment matrix (RAM)
A responsibility is the work that a role performs.
Responsibility
This plan defines staff acquisition, the timetable
for staff acquisition, the staff release plan,
training needs for the project team, any
organizational compliance issues, rewards and
recognitions, and safety concerns for the project
team doing the project work.
Resource management plan
The project manager has the authority to reward
the project team.
Reward
This denotes what a person is specifically
responsible for in a project. Roles are usually tied
to job titles, such as network engineer,
mechanical engineer, and electrician.
Role
This approach smooths out the conflict by
minimizing the perceived size of the problem. It
is a temporary solution, but can calm team
relations and boisterous discussions.
Smoothing
The project team struggles for project positions,
leadership, and project direction. The project
team can become hostile toward the project
leader, challenge ideas, and try to establish and
claim positions about the project work. The
amount of debate and fury can vary depending
on if the project team is willing to work together,
the nature of the project, and the control of the
project manager.
Storming
The project team identifies the disciplines and
specialties that the project will require to
complete the project scope statement. The
technical interfaces are the resources that will be
doing the project work.
Technical interfaces
This conflict resolution method sees one side of
the argument walking away from the problem,
usually in disgust.
Withdrawal
The receiver signals that the message has been
received. An acknowledgment shows receipt of
the message, but not necessarily agreement with
the message.
Acknowledgment
The receiver confirms that the message is being
received through feedback, questions, prompts
for clarity, and other signs of confirmation.
Active listening
The best modality to use when communicating
that is relevant to the information being
communicated.
Choice of media
Anything that the project management team
believes to be true but hasn’t proven to be true.
For example, the project management team may
assume that all of the project team can be
reached via cell phone, but parts of the world, as
of this writing, don’t have a cell signal.
Communication assumptions
Anything that prohibits communication from
occurring
Communication barrier
N(N – 1)/2, where N represents the number of
identified stakeholders. This formula reveals the
total number of communication channels within
a project.
Communication channels formula
Anything that limits the project management
team’s options. When it comes to
communication constraints, geographical locales,
incompatible communications software, and
even limited communications technology can
constrain the project team.
Communication constraints
A project management subsidiary plan that
defines the stakeholders who need specific
information, the person who will supply the
information, the schedule for the information to
be supplied, and the approved modality to
provide the information.
Communications management plan
The device that decodes a message as it is being
received.
Decoder
The receiver is involved in the listening
experience by paying attention to visual cues
from the speaker and paralingual characteristics,
and by asking relevant questions.
Effective listening
The device that encodes the message being sent.
Encoder
The sender confirms that the receiver
understands the message by directly asking for a
response, questions for clarification, or other
confirmation.
Feedback
Stakeholders are mapped on a grid based on
their influence over the project in relation to
their influence over the project execution.
Influence/impact grid
A software package that allows the project
management team to present the project’s
health through graphics, spreadsheets, and text.
(Think of Microsoft Project.)
Information presentation tools
A system to quickly and effectively store, archive,
and access project information.
Information retrieval system
This is the most common and most effective
approach to communication. It’s where two or
more people exchange information. Consider
status meetings, ad-hoc meetings, phone calls,
and videoconferences.
Interactive communication
This is documentation of what did and did not
work in the project implementation. Lessons
learned documentation is created throughout
the project by the entire project team. When
lessons learned sessions are completed, they’re
available to be used and applied by the entire
organization. They are now part of the
organizational process assets.
Lessons learned
The device or technology that transports a
message.
Medium
Anything that interferes with or disrupts a
message
Noise
Facial expressions, hand gestures, and body
language are nonverbal cues that contribute to a
message. Approximately 55 percent of
communication is nonverbal.
Nonverbal
The pitch, tone, and inflections in the sender’s
voice affecting the message being sent.
Paralingual
A report that depicts how well a project is
performing. Often, the performance report is
based on earned value management and may
include cost or schedule variance reports.
Performance report
Presentations are useful in providing information
to customers, management, the project team,
and other stakeholders.
Project presentations
All the business of the project communications is
also part of the organizational process assets.
This includes e-mails, memos, letters, and faxes.
Project records
Reports are formal communications on project
activities, their status, and conditions.
Project reports
This approach pulls the information from a
central repository, like a database of information.
Pull communications are good for large groups of
stakeholders who want to access project
information at their discretion. Consider a project
web site where stakeholders can periodically
drop by for a quick update on the project status.
Pull communication
This approach pushes the information from the
sender to the receiver without any real
acknowledgment that the information was really
received or understood. Consider letters, faxes,
voicemail messages, e-mails, and other
communications modalities that the sender
packages and sends to receivers through some
intermediary network.
Push communication
The person who receives the message.
Receiver
The person who is sending the message.
Sender
Feedback loops and barriers to communications.
Sender–receiver models
Notices to the stakeholders about resolved
issues, approved changes, and the overall health
of the project.
Stakeholder notifications
A regularly scheduled meeting to discuss the
status of the project and its progress toward
completing the project scope statement.
Status review meeting
A system to record the actual time to complete
project activities.
Time reporting system
A risk response appropriate for both positive and
negative risks, but often used for smaller risks
within a project.
Acceptance
Risks that have an uncertain, unclear nature, such
as new laws or regulations, the marketplace
conditions, and other risks that are nearly
impossible to predict
Ambiguity risks
A risk response to avoid the risk.
Avoidance
The most common approach to risk
identification; usually completed by a project
team with subject matter experts to identify the
risks within the project.
Brainstorming
These risks may have negative or positive
outcomes. Examples include using a less
experienced worker to complete a task, allowing
phases or activities to overlap, or forgoing the
expense of formal training for on-the-job
education.
Business risks
A ranking approach to identify the probability
and impact by using a numerical value, from .01
(very low) to 1.0 (certain).
Cardinal scales
A quick and cost-effective risk identification
approach.
Checklists
The consideration of the risk ranking scores that
takes into account any bias, the accuracy of the
data submitted, and the reliability of the nature
of the data submitted.
Data precision
A method to determine which of two or more
decisions is the best one. The model examines
the costs and benefits of each decision’s outcome
and weighs the probability of success for each of
the decisions.
Decision tree
An anonymous method of querying experts about
foreseeable risks within a project, phase, or
component of a project. The results of the survey
are analyzed by a third party, organized, and then
circulated to the experts. There can be several
rounds of anonymous discussion with the Delphi
Technique, without fear of backlash or offending
other participants in the process. The goal is to
gain consensus on project risks within the
project
Delphi Technique
A risk response that attempts to enhance the
conditions to ensure that a positive risk event will
likely happen.
Enhancing
A risk response that is appropriate for both
positive and negative risk events that may
outside of the project manager’s authority to act
upon
Escalating
The monetary value of a risk exposure based on
the risk’s probability and impact in the risk
matrix. This approach is typically used in
quantitative risk analysis because it quantifies the
risk exposure.
Expected monetary value (EMV)
A risk response that takes advantage of the
positive risks within a project.
Exploit
These risks are outside of the project, but directly
affect it—for example, legal issues, labor issues, a
shift in project priorities, or weather. “Force
majeure” risks call for disaster recovery rather
than project management. These are risks caused
by earthquakes, tornadoes, floods, civil unrest,
and other disasters.
External risks
System or process flowcharts show the
relationship between components and how the
overall process works. These are useful for
identifying risks between system components.
Flowcharts
An influence diagram charts out a decision
problem. It identifies all of the elements,
variables, decisions, and objectives and also how
each factor may influence another.
Influence diagrams
These cause-and-effect diagrams are also called
fishbone diagrams and are used to find the root
cause of factors that are causing risks within the
project
Ishikawa diagrams
Low-priority risks are identified and assigned to a
watch list for periodic monitoring.
Low-priority risk watch list
A risk response effort to reduce the probability
and/or impact of an identified risk in the project
Mitigation
A simulation technique that got its name from
the casinos of Monte Carlo, Monaco. The
simulation is completed using a computer
software program that can simulate a project,
using values for all possible variables, to predict
the most likely model.
Monte Carlo technique
A ranking approach that identifies and ranks the
risks from very high to very unlikely or to some
other value.
Ordinal scales
The performing organization can contribute to
the project’s risks through unreasonable cost,
time, and scope expectations; poor project
prioritization; inadequate funding or the
disruption of funding; and competition with other
projects for internal resources.
Organizational risks
A prompt list used for risk identification. PESTLE
examines risks in the Political, Economic, Social,
Technological, Legal, and Environmental
domains.
PESTLE
A matrix that ranks the probability of a risk event
occurring and its impact on the project if the
event does happen; used in qualitative and
quantitative risk analyses
Probability and impact matrix
These risks deal with faults in the management of
the project: the unsuccessful allocation of time,
resources, and scheduling; unacceptable work
results; and poor project management.
Project management risks
These risks have only a negative outcome.
Examples include loss of life or limb, fire, theft,
natural disasters, and the like.
Pure risks
This approach “qualifies” the risks that have been
identified in the project. Specifically, qualitative
risk analysis examines and prioritizes risks based
on their probability of occurring and their impact
on the project should they occur.
Qualitative risk analysis
This approach attempts to numerically assess the
probability and impact of the identified risks. It
also creates an overall risk score for the project.
This method is more in-depth than qualitative
risk analysis and relies on several different tools
to accomplish its goal.
Quantitative risk analysis
An ordinal scale that uses red, amber, and green
(RAG) to capture the probability, impact, and risk
score.
RAG rating
Risks that are expected to remain after a risk
response
Residual risks
A project risk is an uncertain event or condition
that can have a positive or negative impact on
the project
Risk
The systematic process of combing through the
project, the project plan, the work breakdown
structure, and all supporting documentation to
identify as many risks that may affect the project
as possible.
Risk identification
A project management subsidiary plan that
defines how risks will be identified, analyzed,
responded to, and monitored within the project.
The plan also defines the iterative risk
management process that the project is expected
to adhere to.
Risk management plan
The agreed-upon approach to the management
of the project risk processes
Risk management planning
The individuals or entities that are responsible for
monitoring and responding to an identified risk
within the project.
Risk owners
The risk register is a project plan component that
contains all of the information related to the risk
management activities. It’s updated as risk
management activities are conducted to reflect
the status, progress, and nature of the project
risks
Risk register
The risk report explains the overall project risks
and provides summaries about the individual
project risks.
Risk report
An audit to test the validity of the established risk
responses
Risk response audit
The level of ownership an individual or entity has
over a project risk.
Risk responsibilities
The calculated score based on each risk’s
probability and impact. The approach can be
used in both qualitative and quantitative risk
analysis.
Risk score
Root cause identification aims to find out why a
risk event may be occurring, the causal factors for
the risk events, and then, eventually, how the
events can be mitigated or eliminated.
Root cause identification
New risks that are created as a result of a risk
response.
Secondary risks
A quantitative risk analysis tool that examines
each risk to determine which one has the largest
impact on the project’s success.
Sensitivity analysis
A risk response that shares the advantages of a
positive risk within a project.
Sharing
SWOT analysis is the process of examining the
project from the perspective of each
characteristic: strengths, weaknesses,
opportunities, and threats
SWOT analysis
A prompt list used in risk identification to
examine the Technical, Environmental,
Commercial, Operational, and Political factors of
the project.
TECOP
Technical risks are associated with new,
unproven, or complex technologies being used on
the project. Changes to the technology during the
project implementation can also be a risk. Quality
risks are the levels set for expectations of
impractical quality and performance.
Technical, quality, or performance risks
A risk response that transfers the ownership of
the risk to another party. Insurance, licensed
contractors, or other project teams are good
examples of transference. A fee and contractual
relationships are typically involved with the
transference of a risk.
Transference
A type of risk based on the variations that may
occur in the project, such as production, number
of quality errors, or even the weather.
Variability risks
A prompt list used in risk identification that
examines the Volatility, Uncertainty, Complexity,
and Ambiguity of risk factors within the project.
VUCA
When there is an issue or claim that must
be settled before the contract can be
closed, the parties involved in the issue
or claim will try to reach a settlement
through mediation or arbitration.
Alternative dispute resolution
From seller to buyer. Price is the
determining factor in the decision-making
process.
Bid
A meeting of all the project’s potential
vendors to clarify the contract statement
of work and the details of the contracted
work.
Bidder conference
These are disagreements between the buyer and the seller, usually centering on a change, who did the change, and even whether a change has occurred. Claims are also called disputes and appeals, and are monitored and controlled through the project in accordance with the contract terms.
Claims
A contract is a formal agreement
between the buyer and the seller.
Contracts can be oral or written—though
written is preferred.
Contract
This defines the procedures for how the contract may be changed. The process for changing the contract includes the forms; documented communications; tracking; conditions within the project, business, or marketplace that justify the needed change; dispute resolution procedures; and the procedures for getting the changes approved within the performing organization.
Contract change control system
This document requires that the seller fully describe the work to be completed and/or the product to be supplied. The SOW becomes part of the contract between the buyer and the seller.
Contract statement of work (SOW also
CSOW)
A contract that pays the vendor all costs
for the project, but also includes a buyerdetermined
award fee for the project
work.
Cost plus award fee contract
A contract that requires the buyer to pay for the cost of the goods and services procured plus a fixed fee for the contracted work. The buyer assumes the risk of a cost overrun.
Cost plus fixed fee contract
A contract type that requires the buyer to
pay a cost for the procured work, plus an
incentive fee, or a bonus, for the work if
terms and conditions are met.
Cost plus incentive fee
A contract that requires the buyer to pay for the costs of the goods and services procured plus a percentage of the costs. The buyer assumes all of the risks for cost overruns.
Cost plus percentage of costs
These are costs incurred by the project in
order for the project to exist. Examples
include the equipment needed to
complete the project work, salaries of the
project team, and other expenses tied
directly to the project’s existence.
Direct costs
Also known as firm fixed-price and lumpsum
contracts, these are agreements that
define a total price for the product the
seller is to provide.
Fixed-price contracts
A fixed-price contract with opportunities
for bonuses for meeting goals on costs,
schedule, and other objectives. These
contracts usually have a price ceiling for
costs and associated bonuses
Fixed-price incentive fee
A fixed-price contract with a special
allowance for price increases based on
economic reasons such as inflation or the
cost of raw materials.
Fixed-price with economic price
adjustments
An “act of God” that may have a negative
impact on the project. Examples include
fire, hurricanes, tornadoes, and
earthquakes.
Force majeure
These estimates are often referred to as
“should cost” estimates. They are created
by the performing organization or outside
experts to predict what the cost of the
procured product should be.
Independent estimates
These are costs attributed to the cost of
doing business. Examples include
utilities, office space, and other overhead
costs.
Indirect costs
From buyer to seller. Requests the seller
to provide a price for the procured
product or service.
Invitation for Bid (IFB)
A letter contract allows the vendor to
begin working on the project immediately.
It is often used as a stopgap solution.
Letter contract
A letter of intent is not a contract, but a
letter stating that the buyer is intending to
create a contractual relationship with the
seller.
Letter of intent
A process in which the project management team determines the costeffectiveness, benefits, and feasibility of making a product or buying it from a vendor.
Make-or-buy decision
The contractual relationship between the
buyer and the seller is often considered
confidential and secret.
Privity
A project management subsidiary plan
that documents the decisions made in the
procurement planning processes.
Procurement management plan
A process to identify which parts of the
project warrant procurement from a
vendor by the buyer
Procurement planning
A document the seller provides to the
buyer. The proposal includes more than
just a fee for the proposed work. It also
includes information on the vendor’s
skills, the vendor’s reputation, and ideas
on how the vendor can complete the
contracted work for the buyer.
Proposal
A purchase order is a form of unilateral contract that the buyer provides to the vendor showing that the purchase has been approved by the buyer’s organization.
Purchase order (PO)
From seller to buyer. Price is the
determining factor in the decision-making
process.
Quotation
From buyer to seller. Requests the seller
to provide a proposal to complete the
procured work or to provide the procured
product.
Request for Proposal (RFP)
From buyer to seller. Requests the seller
to provide a price for the procured
product or service.
Request for Quote (RFQ)
When the project management team decides to use transference to respond to a risk, a risk-related contractual agreement is created between the buyer and the seller
Risk-related contractual agreements
A tool that filters or screens out vendors
that don’t qualify for the contract.
Screening system
These are used by organizations to rate prior experience with each vendor that they have worked with in the past. The seller rating system can track performance, quality ratings, delivery, and even contract compliance.
Seller rating systems
Defines the obligations for the seller,
what the seller will provide, and all of the
particulars of the contracted work. Terms
of reference is similar to the statement of
work
Terms of Reference
A contract type in which the buyer pays for the time and materials for the procured work. This is a simple contract, usually for smaller procurement conditions. These contract types require a not-to-exceed clause, or the buyer assumes the risk for cost overruns.
Time and materials contract
This takes out the personal preferences
of the decision maker in the organization
to ensure that the best seller is awarded
the contract. Weights are assigned to the
values of the proposals, and each
proposal is scored.
Weighting system
This type of communication means that information is happening among stakeholders, like in a forum. Examples of interactive communications are meetings, videoconferences, phone calls, and ad-hoc conversations. Interactive communications means that the participants are actively communicating with one another.
Interactive communications
A data gathering technique that’s similar to brainstorming, but provides brainstorming meeting participants with the questions and topics for brainstorming before the stakeholder identification meeting.
Brain writing
Stakeholders—such as management, the project manager, program manager, or customers—that have the authority to make decisions in the project.
Key stakeholder
Part of stakeholder analysis classification. A leading stakeholder is aware of your project, they want your project to be successful, and the stakeholder is working to make certain the project is a success.
Leading stakeholder status
A stakeholder who does not want the project to exist and is opposed to the project.
Negative stakeholder
A stakeholder who has neither a positive nor negative attitude about the project’s existence.
Neutral stakeholder
Part of stakeholder analysis classification. A neutral stakeholder is aware of your project and is not concerned if the project succeeds or fails.
Neutral stakeholder status
A stakeholder who sees the benefits of the project and is in favor of the change the project is to bring about.
Positive stakeholder
This is an analysis meeting to examine and document the roles in the project. The role’s interests, concerns, influence, project knowledge, and attitude are documented.
Profile analysis meeting
This type of communication pulls information from a central repository. Pull communications allow stakeholders to retrieve information from a central source as needed.
Pull communications
This type of communication happens when the sender pushes the same message to multiple people. Good examples of push communications are broadcast text messages, faxes, press releases, and group e-mails.
Push communications
A reporting system is a software program to store and analyze project data for reporting. A common reporting system will take project data, allow the project manager to pass the data through earned value management, for example, and then create forecasting reports about the project costs and schedule.
Reporting system
Part of stakeholder analysis classification. A resistant stakeholder is aware of your project, but they do support the changes your project will create.
Resistant stakeholder status
Anyone who is affected by the existence of the project or who can affect the project’s existence. Stakeholders can enter and exit the project as conditions change within the project.
Stakeholder
An activity that ranks stakeholders based on their influence, interests, and expectations of the project. Stakeholders are identified and ranked, and then their needs and expectations are documented and addressed.
Stakeholder analysis
These are charts and diagrams that help the project manager determine the influence of stakeholders in relation to their interest in the project. Common classification models include the power/interest grid, the power/influence grid, the influence/impact grid, and the salience model.
Stakeholder classification models
The project manager works to keep the project stakeholders interested, involved, and supportive of the project. Through communication, management skills, and interpersonal skills, the project manager can work to keep the project stakeholders engaged and interested in the project.
Stakeholder engagement
A project initiation activity to identify, document, and classify the project stakeholders as early as possible in the project.
Stakeholder identification
The project management knowledge area that focuses on the management and engagement of the project stakeholders. There are four processes in this knowledge area: identify stakeholders, plan stakeholder management, manage stakeholder engagement, and Monitor Stakeholder Engagement.
Stakeholder management
The stakeholder engagement plan documents a strategy for managing the engagement of project stakeholders. The stakeholder engagement plan establishes stakeholder engagement and defines how the project manager can increase and improve stakeholder engagement.
Stakeholder engagement plan
The project manager works with the project team and subject matter experts to create a strategy to manage the project stakeholders.
Stakeholder engagement planning
A documentation of each stakeholder’s contact information, position, concerns, interests, and attitude toward the project. The project manager updates the register as new stakeholders are identified and when stakeholders leave the project.
Stakeholder register
This is part of stakeholder analysis classification. A supportive stakeholder is aware of your project and is supportive and hopeful that the project will be successful.
Supportive stakeholder status
Part of stakeholder analysis classification. An unaware status means the stakeholder doesn’t know about the project and the effect the project may create on the stakeholder.
Unaware stakeholder status
What is MACD?
Moving, adding, changing, deleting
What are the project contraints?
Scope, Quality, Schedule, Budget, Resources, Risks
High-level to low-level (detailed) approach to scope definition (as you get more information you can give an estimate with much more confidence)
Progressive Elaboration
